The Performance Monitoring Role in mis

MIS are not just statistics and data analysis, but also assessment of human capabilities. They have to be used as an MBO (Management by objectives) tool. They help:

• To establish relevant and measurable objectives,

• To monitor results and performances (reach ratios).

To send alerts, in some cases daily, to managers at each level of the organization, on all deviations between results and pre-established objectives and budgets.

The Management Information System Group develops, maintains and operates software managing a large scope of general purpose data.

The applications enable:

• On-site users to process orders, manage budgets, assets and stocks.

The world-wide ESRF user community to process scientific proposals, reports, a forms, and safety aspects related to experiments, statistics and soon experiment scheduling.

Potential Benefits of mis Investments

Investing in information systems can pay off for a company in many ways.

• Such an investment can support a core competency. Great companies invariably have one or two core competencies, something they can do better than anyone else. This could be anything from new product development to customer service. It is the heart of the business and no matter what it is; information technology can support that core competency. An IT investment in a company's core competency can create a significant barrier to entry for other companies, defending the organization's primary turf and protecting its markets and profits.

• It can build supply chain networks. Firms that are a part of an integrated supply chain system have established relationships of trust with suppliers. This means faster delivery times, problem-free delivery and an assured supply. It can also mean price discounts and other preferential treatment. The inability of new entrants to get onto a supply chain/inventory management system can be a major barrier to entry.

• It can enhance distribution channel management. As with supplier networks, investment in distribution channel management systems can ensure quicker delivery times, problem free delivery, and preferential treatments. When the distribution channel management system is exclusive, it can mean some control over access to retailers, and, once more, a barrier to entry.

• Such an IT investment can help build brand equity. To build a brand, firms often invest huge sums in advertising. A huge brand name is a formidable barrier to enter and sustaining it can be facilitated by investment in marketing information systems and customer relationship management system.

• Information systems can mean better production processes. Such systems have become essential in managing large production runs. Automated systems are the most cost efficient way to organize large scale production. These can produce economies of scale in promotion, purchasing, and production; economies of scope in distribution and promotion; reduced overhead allocation per unit; and shorter break-even times more easily. This absolute cost advantage can mean greater profits and revenue.

• IT investment can boost production processes. Information systems allow company flexibility in its output level. Michael Porter claims that economies of scale are a barrier to entry, aside from the absolute cost advantages they provide. This is because, a company producing at a point on the long-run average cost curve where economies of scale exist has the potential to obtain cost savings in the future, and this potential is a barrier to entry.

• Implementing IT experience can leverage learning curve advantages. As a company gains experience using IT systems, it becomes familiar with a set of best practices that are more or less known to other firms in the industry. Firms outside the industry are generally not familiar with the industry specific aspects of using these systems. New entrants will be at a disadvantage unless they can redefine the industries best practices and leap-frog existing firms.

• IT investment can impact mass customization production processes. IT controlled production technology can facilitate collaborative, adaptive, transparent, or cosmetic customization. This flexibility can increase margins and increase customer satisfaction.

• Leverage IT investment in computer aided design (1). CAD systems facilitate the speedy development and introduction of new products. This can create proprietary product differences. Product differentiation can be a barrier to entry. Proprietary product differences can be used to create incompatibilities between competing products (as every computer user knows). These incompatibilities increase consumers’ switching costs. High customer switching costs is a very valuable barrier to entry (Hey, it worked for Bill Gates.)

• It means expanded E-commerce. Company web sites can be personalized to each customer’s interests, expectations, and commercial needs. They can also be used to create a sense of community. Both of these tend to increase customer loyalty. Customer loyalty is an important barrier to entry.

• Information systems leverage stability. Technologically sophisticated firms with multiple electronic points of contact with customers, suppliers, and others enjoy greater stability. This monumental appearance of stability can be a barrier to entry, especially in financial services.

The simple fact that IT investment takes a significant amount of money makes it a barrier to entry. Anything that increases capital requirements is -- guess what? -- A barrier to entry.